Shack Homebuilders Limited is evaluating a new promotional campaign that could increase home sales. Possible outcomes and probabilities of the outcomes are shown next. Possible Outcomes Ineffective campaign Normal response Extremely effective Additional Sales in Units 40 90 115 Probabilities 0.30 0.50 0.20 Compute the coefficient of variation. Note: Do not round intermediate calculations. Round your answer to 3

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Shack Homebuilders Limited is evaluating a new promotional campaign that
could increase home sales. Possible outcomes and probabilities of the
outcomes are shown next.
Possible Outcomes
Ineffective campaign
Normal response
Extremely effective
Additional Sales
in Units
40
90
115
Coefficient of variation
Probabilities
0.30
0.50
0.20
Compute the coefficient of variation.
Note: Do not round intermediate calculations. Round your answer to 3
decimal places.
Transcribed Image Text:Shack Homebuilders Limited is evaluating a new promotional campaign that could increase home sales. Possible outcomes and probabilities of the outcomes are shown next. Possible Outcomes Ineffective campaign Normal response Extremely effective Additional Sales in Units 40 90 115 Coefficient of variation Probabilities 0.30 0.50 0.20 Compute the coefficient of variation. Note: Do not round intermediate calculations. Round your answer to 3 decimal places.
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